While many of us plan for the future, through saving for retirement and making a Will, we often overlook one of the most important legal protections available. Donna Thompson, chartered legal executive in our wills, trusts and probate team, looks at the benefits of setting up a Lasting Power of Attorney (LPA).
Why it matters
Putting a Lasting Power of Attorney in place ensures that if you ever lose the ability to make decisions for yourself, someone you trust can step in and act on your behalf.
Without an LPA in place, your family cannot automatically make decisions for you if you lose mental capacity. Instead, they would have to apply to the Court of Protection for a Deputyship Order.
This is more expensive and time consuming, and your Deputy would have to file a report every year with the Office of the Public Guardian. A Lasting Power of Attorney is definitely the easier option.
Lasting Powers of Attorney are governed by the Mental Capacity Act and must be registered with the Office of the Public Guardian before they can be used.
Your options
There are two different types of Lasting Powers of Attorney – health and welfare and property and financial affairs.
A health and welfare LPA allows your Attorney to make decisions in relation to your care and medical decisions if you cannot make decisions for yourself.
This could be consenting to a serious operation, cancer treatment or deciding on your care.
A property and financial affairs LPA allows your Attorney to step in and manage your money and property, pay bills, deal with insurance companies, pension providers, DWP and HMRC.
Do it now, not later
Lasting Powers of Attorney provide clear authority, and this helps to avoid family conflicts and ensures the right people are making decisions for you.
You can also include guidance or instructions in your LPA to assist your Attorneys when making decisions for you.
Lasting Powers of Attorney are not just for older people; loss of capacity can happen at any age.
Creating an LPA while you are fit and well ensures your care and financial affairs are protected whatever the future holds.
Hopefully the LPAs are never needed but it is peace of mind knowing that you have legal documents in place appointing people that you trust to make decisions for you.
If you have any questions or need any guidance on setting up a Lasting Powers of Attorney, please get in touch with our wills, trusts & probate team on 01772 258 321.